S T A T E   O F   N E W   Y O R K
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                                  5134

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 14, 2011
                               ___________

Introduced  by M. of A. CERETTO -- read once and referred to the Commit-
  tee on Energy

AN ACT to amend the public authorities law, in relation to  establishing
  the  power  authority  of  the  state  of New York shall make low cost
  hydropower available to certain hospitals

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The opening paragraph of subdivision 13 of section 1005 of
the public authorities law, as amended by chapter 436  of  the  laws  of
2010, is amended to read as follows:
  Notwithstanding any other provision of law to the contrary but subject
to  the  terms  and  conditions  of federal energy regulatory commission
licenses, to allocate or reallocate directly or by sale for resale,  two
hundred  fifty  megawatts of firm Niagara project hydroelectric power as
"expansion power" and four hundred forty-five megawatts of firm  Niagara
project  hydroelectric power as "replacement power" to businesses within
the state located within thirty miles of the Niagara project,  and  four
hundred  ninety megawatts of firm and interruptible power from the Saint
Lawrence-FDR project as "preservation power" sold to businesses  located
within  the counties of Jefferson, Saint Lawrence and Franklin, provided
that the amount of expansion power allocated to businesses in Chautauqua
county on January first, nineteen hundred eighty-seven shall continue to
be allocated in such county and, provided further  that  up  to  seventy
megawatts  of replacement power, up to thirty-eight and six-tenths mega-
watts of preservation power from the Saint Lawrence-FDR project which is
relinquished or withdrawn after the  effective  date  of  chapter  three
hundred  thirteen  of  the  laws of two thousand five which amended this
subdivision and, for the period ending  on  December  thirty-first,  two
thousand  six,  up  to  twenty  megawatts  of other power from the Saint
Lawrence-FDR project which is unallocated as of the  effective  date  of
chapter  three  hundred  thirteen of the laws of two thousand five which
amended this subdivision, shall be allocated by the  authority  together
with such other funds of the authority as the trustees deem feasible and
advisable  for  energy  cost  savings  benefits and for western New York

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01438-01-1

A. 5134                             2

economic development fund benefits pursuant to the eleventh undesignated
paragraph of this section AND, PROVIDED FURTHER THAT LOW COST HYDROPOWER
BE MADE AVAILABLE TO HOSPITALS THAT  ARE  LOCATED  IN  THE  COUNTIES  OF
NIAGARA AND ORLEANS.  Provided, however, that the amount of replacement,
preservation   power,  or  the  additional  twenty  megawatts  of  Saint
Lawrence-FDR power for the  period  ending  December  thirty-first,  two
thousand  six  made  available  for  such  purpose, used for energy cost
savings benefits that are relinquished by or withdrawn from a  recipient
thereof  shall  be offered by the authority proportionately for a period
of six months for reallocation to applicants  who  qualify  respectively
for  replacement  or  preservation power allocations as provided in this
subdivision. If such power is not allocated within such period it  shall
be allocated for the purpose of energy cost savings benefits pursuant to
subdivision  (h)  of  section  one  hundred eighty-three of the economic
development law. The authority shall negotiate contracts  on  reasonable
terms  and  conditions to renew or extend every permanent contract allo-
cation of expansion power in effect on the effective date of this subdi-
vision and, to the extent consistent with such contracts, the  authority
shall  negotiate  contracts on reasonable terms and conditions to extend
or renew all other allocations or allotments of such power in effect  on
such  date.  The authority shall negotiate contracts on reasonable terms
and conditions to renew or extend for a period of at  least  five  years
every  permanent  contract  allocation of replacement power in effect on
the effective date of chapter three hundred thirteen of the laws of  two
thousand  five  which  added  this sentence and that would expire by its
terms on or before the end of  the  initial  federal  energy  regulatory
commission  license for the Niagara project; provided that, in negotiat-
ing the terms and  conditions  of  such  contracts,  the  authority  may
consider  a  business'  compliance  with  all  current contractual obli-
gations, including employment and  power  usage  commitments.  Contracts
entered  into  pursuant  to  this  subdivision  shall contain reasonable
provisions providing for the partial or complete withdrawal of the power
in the event the recipient fails to maintain mutually agreed  levels  of
employment,  investment, and power utilization. Expansion or replacement
power relinquished by businesses or withdrawn by the authority shall  be
allocated  directly or by sale for resale by the authority to businesses
within the state located within thirty  miles  of  the  Niagara  project
provided,  that the proceeds from the sale of such unallocated and allo-
cated, but relinquished or withdrawn or currently not accessed expansion
or replacement power, as shall be determined by the trustees,  shall  be
allocated for the purposes of western New York economic development fund
benefits  pursuant  to  the  eleventh  undesignated  paragraph  of  this
section. Proceeds to such western New  York  economic  development  fund
shall  not  preclude the authority from allocating expansion or replace-
ment power to eligible companies under the provisions of  this  section.
The  amount  of  power  allocated  to businesses in Chautauqua county on
January first, nineteen hundred eighty-seven shall be allocated in  such
county.  Preservation  power that is relinquished by businesses or with-
drawn by the authority shall be allocated directly or by sale for resale
by the authority within the counties of Jefferson,  Saint  Lawrence  and
Franklin.   Allocations made pursuant to this paragraph shall be made in
accordance with criteria established  by  the  trustees.  Such  criteria
shall address the expansion of industry and employment pursuant to para-
graph  (a) of this subdivision and the revitalization of existing indus-
try pursuant to paragraph (b) of this subdivision.
  S 2. This act shall take effect immediately.